SB 285 — Pawnbrokers: compensation: loans.

Summary

Existing law regulates pawnbrokers and sets the maximum compensation charged or received by pawnbrokers on loans to their customers. A knowing violation of the provisions regulating pawnbrokers is a crime. Existing law provides a schedule of maximum charges for 21 loan brackets for the first 3 months of any loan. This bill, in that schedule, would consolidate the 21 loan brackets into 6 and set maximum charges within those brackets. Existing law, among other things, limits the charge for the 4th and subsequent months of a loan to 2.5% per month on the unpaid balance, as specified. This bill would increase the charge limit for the 4th and subsequent months to 3% per month. Existing law permits a loan setup fee of the greater of $5 or 2% of the loan amount, not to exceed $10. This bill would adjust the permitted loan setup fee to the greater of either $5 or 3% of the loan amount, not to exceed $30. Existing law establishes the maximum amount, irrespective of the duration of the loan, that may be charged based on size of pawned articles, as specified, and prohibits a storage charge for any article that can be contained within one cubic foot. This bill would permit a pawnbroker to additionally charge a maximum of $1 for handling and storage of any article that can be contained within one cubic foot. Existing law requires a written contract that provides a 4-month loan period for every loan made by a pawnbroker for which goods are received in pledge as security and, under specified circumstances, requires a pawnbroker to notify the borrower at his or her last known address of the termination of the loan period, by a means for which verification of mailing or delivery of the notification can be provided by the pawnbroker, and provides for extending the right of redemption for a period of 10 days from the date that notice is mailed. This bill instead would require a minimum 4-month loan period and would require the pawnbroker to provide that notification to the pledgor at his or her last known mailing or electronic address, by a means for which verification of mailing or, at the sole option of the pledgor, electronic transmission of the notification can be provided by the pawnbroker, as specified. This bill also would require representatives of the pawnbroker industry to poll their members annually to gather data relating to the current financial condition of the California pawn industry. Because a knowing violation of these provisions by a pawnbroker would be a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 09/02/15 - Chaptered Current pdf September 02, 2015
• Enrolled 08/24/15 - Enrolled pdf August 24, 2015
• Amended 06/04/15 - Amended Assembly pdf June 04, 2015
• Amended 05/05/15 - Amended Senate pdf May 05, 2015
• Introduced 02/19/15 - Introduced pdf February 19, 2015
• SB285 View text html

Action History

1. September 02, 2015

   Chaptered by Secretary of State. Chapter 245, Statutes of 2015.

2. September 02, 2015

   Approved by the Governor.

3. August 26, 2015

   Enrolled and presented to the Governor at 4:30 p.m.

4. August 20, 2015

   Assembly amendments concurred in. (Ayes 38. Noes 0.) Ordered to engrossing and enrolling.

5. August 19, 2015

   Ordered to special consent calendar.

6. July 16, 2015

   In Senate. Concurrence in Assembly amendments pending.

7. July 16, 2015

   Read third time. Passed. (Ayes 79. Noes 0. Page 2432.) Ordered to the Senate.

8. July 09, 2015

   Read second time. Ordered to consent calendar.

9. July 08, 2015

   From committee: Do pass. Ordered to consent calendar. (Ayes 14. Noes 0.) (July 8).

10. June 23, 2015

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 22). Re-referred to Com. on APPR.

11. June 04, 2015

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.

12. June 04, 2015

    Referred to Com. on B. & F.

13. May 22, 2015

    In Assembly. Read first time. Held at Desk.

14. May 22, 2015

    Read third time. Passed. (Ayes 39. Noes 0. Page 1065.) Ordered to the Assembly.

15. May 19, 2015

    Read second time. Ordered to third reading.

16. May 18, 2015

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

17. May 08, 2015

    Set for hearing May 18.

18. May 05, 2015

    Read second time and amended. Re-referred to Com. on APPR.

19. May 04, 2015

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 819.) (April 28).

20. April 21, 2015

    Set for hearing April 28.

21. April 15, 2015

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0. Page 617.) (April 15). Re-referred to Com. on JUD.

22. March 10, 2015

    Set for hearing April 15.

23. March 05, 2015

    Referred to Coms. on B. & F.I. and JUD.

24. February 20, 2015

    From printer. May be acted upon on or after March 22.

25. February 19, 2015

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Block · Primary
• Galgiani · Cosponsor
• Maienschein · Cosponsor
• Vidak · Cosponsor

Votes

Subjects